The Benefits of Bucketed Savings: Helping Employees Build Emergency Funds and Financial Stability

As an HR professional, it's important to know the best ways to help support your employees financially. It's well-known that two-thirds of Americans couldn't cover a $400 emergency expense. Moreover, more than half of Americans earning six-figure salaries admitted they were living paycheck to paycheck last year as high inflation hit households hard. This underscores the fact that financial literacy and emergency savings are areas in which most employees need extra help.

While most employers realize the importance of helping their employees build emergency funds, some want to help their employees save up a down payment for their first apartment, and others want to help their employees pay for public transport or parking costs for the year. All of these goals are important for employees' overall financial success and stability, and bucketed savings programs like Quber can help make these goals achievable.

Employees have the flexibility to save for what matters to them, while employers have the flexibility to match savings in the buckets they want to support most.

Not only are employees building the habit of saving money and growing their emergency funds, but they are saving for other goals that are important to them, too. They learn to plan ahead and build a sensible budget that prevents them from dipping into their emergency fund for other purposes. 

Once they build confidence and knowledge, within 2-3 years employees are looking to do more with their money. While most employees start out needing help with budgeting and saving for the short term, once they build their confidence, they look for help to do more with their money. Seeing their savings increase encourages them to think of bigger financial goals optimistically and pushes them to take action.

Based on Financial Wellness Assessment Measurements of employees in Quber app

After 2-3 years, employees need less help with budgeting and short-term saving, and more help and guidance with retirement savings. This is especially important data for HR leaders who see low enrolment in 401K programs.

An employer-sponsored savings program combined with a bucketed budgeting approach and timely behavioral nudges is a winning combination.

Deposits in a bucketed emergency savings account are twice as high as those in a traditional emergency savings account, with average savings reaching more than $200 a month.

Download year over year measurements of Quber’s emergency savings program

Investing in your employees with the right resources to build up their emergency funds, combined with access to an easy-to-use budgeting tool, is essential for developing financial literacy and stability. Quber can provide your employees with a safe and secure way to maintain savings and reach their financial goals, while having a major impact on your organization's bottom line.

If you want to enhance the financial security of your employees and maximize your organization’s bottom line, look no further than Quber. Contact our team to learn more about how Quber's bucketed savings and budgeting approach can make it easy to help your employees achieve financial success.